Kansas City Southern (KCS), a wholly owned subsidiary of Canadian Pacific Railway Limited (CP), A deal valued at approximately $31,000 millionWhich will create the first single railroad linking the United States, Mexico and Canada.
Following this transaction, KCS shares were placed in a voting fund with Dave Starling, the company’s former president and CEO, appointed as the voting trustee.
According to the company, This ensures that Southern Kansas City will operate independently of CP, It will remain in effect until the United States Road Transportation Board (STB) issues its decision on the companies’ joint application for railroad control.
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“STB’s approval of CP’s control of KCS would lead to the creation of Canadian Pacific Kansas City Limited (CPKC), the first single railroad linking the United States, Mexico and Canada. He explained that STB’s review of CP’s control was expected to be completed. proposed to KCS in the fourth quarter of 2022.
In this sense, Keith Creel, President of Canadian Pacific . confirmed it It’s a historic day for both companies since CPKC It will become the backbone of connecting your customers to new markets.
It will enhance competition on the US rail network and drive economic growth in North America while providing significant environmental benefits. We are excited to reach this milestone on the road to construction of this only railway line in North America.
In turn, Patrick Ottenmaier, President of KCS, indicated that they are excited about the possibilities that will open to them through this combination with CP.
According to the company, the expected benefits from the business combination will not be realized until STB agrees to CP’s control of KCS Railroads.
Also, after obtaining control approval from STB, the two companies hope to achieve full integration over the next three years, unleashing the advantages of the combination.